Philippines tire market was valued at USD 0.90 billion in 2022 and is expected to register a CAGR of 5.68% between 2023 and 2028F.The growth of the Philippine tire market is due to the high replacement rate of tires, the rising fleet of vehicles, innovation in tire technology, and government initiatives and policies.
The vehicle sales are increasing with the rise in disposal income of the consumers. Moreover, Filipinos buy their own vehicles and prefer SUVs and Sedan cars because of the unreliable public transportation options, and issues with road conditions and parking space. Also, the government plans to building infrastructure, hence increasing the demand for commercial vehicles sales. Thus, the rise in vehicle fleet size in turn have a robust impact on the Philippines tire market.
Several tire manufacturers are developing innovative new tires to fulfill changing consumer demands for improved ride comfort, safety, higher fuel efficiency, and durability. The products’ performance will be further optimized through technological innovation and progress, opening up a wider range of potential usage in the online market.
The E-commerce sector has grown in popularity in recent years since it makes it simple to compare tire models. The online platform is advantageous for the users not only because it gives them time to compare quality, pricing, tire size specs, and other details, but also because it has lower overhead costs than traditional retail stores. Thus, causing the Philippines tire market to experience rising demand and a significant growth rate in the coming years.
The Philippines Government has allocated USD540 million for the comprehensive automotive resurgence strategy (CARS) with the aim to increase investment in local motor vehicle manufacturing and to promote the local sources of raw materials used in the assembly process. The Motor Vehicle Development Program (MVDP) allows domestic players to provide incentives for local production tires, which will increase with these government initiatives.
The Two-Wheeler segment accounted for around 60% of the market share in terms of units sold in 2022 and is projected to remain the largest segment through 2028. The rise in demand for electric vehicles in the Two-wheeler segment will be one of the factors driving the two-wheeler tire market growth in Philippines, as most of the electric vehicles will be from the two-wheeler segment in the country.
Philippine Allied Enterprises Corporation, Goodyear Philippines, Inc, Yokohama Tire Sales Philippines Inc., Tiara Commercial & Industrial Corp., Armstrong Enterprises Company, Inc, Sailun Co., Ltd., CST Tires/AP Blue Whale, Inc., Nexen Distribution Philippines Inc, Michelin Philippines Pty Ltd. and Westlake Tires Philippines are the key players developing advanced technologies to stay competitive in the market and enhancing their product portfolio in various regions to increase their customer outreach.
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